Opendoor shares soar on optimism of gains in iBuying after Zillow exit

Zillow’s abrupt exit from the home-buying market is leading investors to see an opening for Opendoor.

A day after Zillow’s stock fell to a 16-month low, Opendoor shares soared as much as 19%. The San Francisco-based company, which went public late last year through a special purpose acquisition company, pioneered the instant-buying (or iBuying) market, allowing homeowners to sell their property online for cash, rather than going through an extended bidding, sales and closing process.

Opendoor is scheduled to report third-quarter earnings next Wednesday, so investors will…